This article provides an in-depth analysis of the case ITA 244/DEL/2019, where the appellant, A G Peripherals, New Delhi, appealed against the ACIT, Circle-41(1), New Delhi. The case pertains to the assessment year 2015-16 and discusses the appeal process, evidentiary requirements, and the tribunal’s decision.
The appellant, A G Peripherals, filed an appeal against the order dated 12.11.2018 passed by the CIT(A)-14, New Delhi. The case concerns the assessment year 2015-16 and was filed on 14.01.2019. The primary contention in the appeal was the disallowance of deduction claimed under section 80-IC of the Income Tax Act, 1961.
During the assessment, the revenue authorities noted certain discrepancies which led to the issuance of a show cause notice to the appellant. However, the appellant’s counsel argued that the CIT(A) had incorrectly disallowed the deduction claimed under section 80-IC.
During the hearing, the appellant’s counsel argued that the CIT(A) had erred in disallowing the deduction under section 80-IC. The counsel referenced the Supreme Court’s decision in Pr. CIT Vs. Aarham Softronics, which held that an assessee undertaking substantial expansion within the initial 10-year period would be eligible for 100% deduction even after the first five years.
On the other hand, the Departmental Representative (DR) supported the orders of the revenue authorities and emphasized the application of the Supreme Court’s decision in the case of Classic Binding Industries, which initially denied such deductions.
The tribunal, presided by Shri Challa Nagendra Prasad, Judicial Member, and Shri Pradip Kumar Kedia, Accountant Member, reviewed the arguments and the records presented by both parties. The tribunal acknowledged the decision in Pr. CIT Vs. Aarham Softronics, which overruled the earlier judgment in Classic Binding Industries.
The tribunal decided to allow the appeal, referencing the Supreme Court’s judgment in Aarham Softronics. The judgment clarified that an assessee is entitled to 100% deduction for substantial expansion within the first 10 years of the initial assessment year.
In conclusion, the appeal filed by A G Peripherals was allowed, and the tribunal directed the Assessing Officer to grant the deduction under section 80-IC for the assessment years 2012-13 and 2015-16. The tribunal’s decision underscores the importance of following the Supreme Court’s judgments in tax deduction cases.
The case of ITA 244/DEL/2019 highlights critical aspects of tax litigation, emphasizing the necessity of adhering to higher court rulings. This decision sets a precedent for similar cases, ensuring that appellants are granted fair deductions based on substantial expansions within the prescribed period.
Tax Deduction Dispute of A G Peripherals in ITA 244/DEL/2019
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